L&T Infotech IPO soon on board

Larsen & Toubro Infotech, an information technology arm of L&T is all set to hit the streets with its Initial Public Offering (IPO). L&T on Wednesday proposed an IPO of its subsidiary L&T Infotech where the Red Herring Prospectus filed was approved on June 28.

Promoter L&T that holds 94.96 per cent stake in the company had announced the launch of an IPO earlier on April 12. The amount of offer is Rs 1.75 crores equity shares. The subscription will open on July 11 and close on July 13. The company will not receive any proceeds from the offer.

L&T aims to enhance its IT arm’s brand name and give liquidity benefits to its shareholders. L&T Infotech, a Mumbai based IT solutions company has posted its topline revenues at Rs 5847.06 crores, an increase of 17.45 per cent as against Rs 4978.04 crores in FY 2014-15. The net profits have come in at Rs 922.18 crores in FY 2015-16 as against Rs 768.53 crores, an increase of nearly 20 per cent.

L&T Infotech is a global IT solutions & services company, with its sales offices and delivery centres in North America, Europe, Middle East & South Africa and APAC, apart from India. L&T Infotech’s equity shares would be listed both on BSE and the NSE. The book running lead managers to the issue are Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company and ICICI Securities.